Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: empanelment :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: VAT Audit
Latest Circulars »
  Registrations open for NCFE’s NFLAT (National Financial Literacy Assessment Test)
 Sovereign Gold Bond Scheme 2016 -17 – Series III
 Minutes of the Monetary Policy Committee Meeting October 3-4, 2016
 Registrations open for NCFE’s NFLAT (National Financial Literacy Assessment Test)
 Auction for Sale (Re-issue) of 7.35 per cent Government Stock 2024
 Auction of Government of India Dated Securities October 17, 2016
  Setting The Priorities Right (Shri S. S. Mundra, Deputy Governor – September 28, 2016 – at the 3rd SBI Banking and Economics Conclave in Mumbai)
  Financial Stability in a Weak Global Environment (Shri S. S. Mundra, Deputy Governor - September 22, 2016 - at the 7th SEACEN High Level Seminar for Deputy Governors in–charge of Financial Stability and Supervision, Mumbai)
 RBI issues Directions to United India Co-operative Bank Ltd., Nagina, Bijnor, Uttar Pradesh – Withdrawal of Directions
  RBI-Revision of interest rates for Small Savings Schemes
  Annual E-Filling of Documents under the Companies Act. CORPORATE LAWS

RBI-Rationalisation and Revision of Agency Commission Payable to Banks on Government Transactions
May, 23rd 2012


May 22, 2012

The Chairman and Managing Director/Chief Executive Officer
All Agency Banks

Madam / Dear Sir,

Rationalisation and Revision of Agency Commission
Payable to Banks on Government Transactions

As you are aware, Reserve Bank of India (RBI) carries out the general banking business of the Central and State Governments through its own offices and through the offices of the Agency Banks appointed under Section 45 of the RBI Act, 1934, by mutual agreement.   RBI pays agency commission (also called turnover commission) to the Agency Banks for the Government business handled by them. As per paragraph 5 of the Agency Bank agreement, RBI pays agency commission at a rate determined by it.  In terms of this provision, agency commission rates are reviewed from time to time. The existing agency commission rates have been operative since July 01, 2005.

2. In a dynamic banking scenario, several factors/ developments influence the cost / mechanism of agency business arrangement. Taking all these factors into consideration, RBI had held detailed consultations with major public and private sector agency banks in the recent months, based on the recommendations made by a Committee set up in this regard.

Accordingly, it has now been decided to prescribe a revised agency commission rate structure as under:-

Sl. No.

Type of transaction


Existing Rate


1 (i)

Receipts Physical mode

Per transaction

` 45

` 50


Receipts e-mode

Per transaction

` 45

` 12


Pension Payments

Per transaction

` 60

` 65


Payments other than Pension

Per ` 100 turnover

9 paise

5.5 paise

3. In this context, it may please be noted that Receipts e-mode transactions indicated against Sl No. 1(ii) in the above table would refer to those transactions involving remittance of funds from the remitters bank account through internet banking as well as all such transactions which do not involve physical receipt  of cash / instruments.

4.  The revised rates will be effective from July 01, 2012, and will remain valid till the next review.

Yours faithfully

Chief General Manager-in-Charge

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions